Nguyen Thi Mai Phuong

Type of the article: Research Article

Abstract
The synergy between industrialization and environmental sustainability, known as the “twin transition,” has become a critical strategic imperative for emerging economies. This study aims to empirically examine the direct impact of green innovation on economic performance and the moderating role of digital transformation within the context of Vietnam. Data collected from a stratified random sample of 384 C-suite executives and senior managers within the manufacturing and service sectors across Vietnam’s key economic zones were analyzed using hierarchical linear regression. The quantitative analysis reveals that green innovation has a positive, moderate direct impact on economic performance (β = 0.24, p < 0.001). Furthermore, digital transformation demonstrates a strong independent direct effect on performance (β = 0.31, p < 0.001) and acts as a significant moderator (β = 0.19, p < 0.01). The inclusion of this interaction term significantly increased the model’s explanatory power (ΔR2 = 0.04, p < 0.01), providing statistical confirmation that firms with high digital capabilities realize substantially greater financial benefits from green investments compared to those with low digital maturity. Ultimately, these findings conclude that digital transformation is a dynamic capability that unleashes the financial value of sustainability strategies, offering a roadmap for integrated smart-green investments.